20 April 2009

Dr. Mario Koppers

Via email to: mkoppers@chromatique.com

Dear Dr. Koppers

EDWAFIN/EDWABOND AND YOUR LETTER DATED 8 APRIL 2009

Thank you for your letter setting out your concerns in relation to your investment in
Edwafin. In reply, I wish to point out the following, which I will happily discuss with
you if needed:

Background:
1. Edwabond Capital Options (Pty) Ltd (“Edwabond”) was a member of SAVCA
from March 2008 up until the beginning of 2009.
2. In late February 2009, SAVCA received communication from Edwabond
saying that they would not be renewing their SAVCA membership.
3. Full SAVCA membership is open to entities that meet the following criteria
and membership applications are approved by a subcommittee of the SAVCA
Board:
a. have as their principal business - the management of capital (third
party and/or proprietary capital) for provision of capital (equity or
quasi equity) to unlisted companies; and
b. employs professionals - dedicated to the management of the capital
and the investments made using the capital (and capital from other
providers); and
c. generates returns - mainly through medium to long term returns on
investment and/or social development returns.
4. SAVCA members, when applying to membership, confirm that they will abide
by the SAVCA code of conduct.
5. SAVCA is a Section 21 Company that represents the interests of it members
(Venture Capital and Private Equity fund managers).
6. SAVCA is a self regulating organisation and not a regulator of or the authority
for the industry.

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PO Box 1140, Houghton, 2041, Suite N 204A, North Wing Office Block,
204 Oxford Road, Thrupps Illovo Centre, Illovo, Johannesburg
Tel: +27 (0)11 268 0041 Fax: +27 (0)11 268 0527
info@savca.co.za
www.savca.co.za
Association incorporated in terms of Section 21, Reg. No. 2000/028170/08
Directors: C Fernandez (Chairperson), C Dreyer, E du Toit, R Flett, F Gillion,
K Kunene, P Johl, Z Lusengo, N Martin, N Mthembu, A. Pieterse
Executive Officer: J-P Fourie
After reading your blog, speaking to the Financial Services Board (“FSB”) and
Edwabond; Your situation as an investor into Edwafin and SAVCA:
1. The regulation of Edwabond is the domain of the Financial Services Board
(“FSB”), under which I understand, Edwabond had a Financial Advisory and
Intermediary Services Act (“FAIS”) Licence (trading name for the license was
Ruwenzori Trust). Mr. Lawrence Muravha, of the FSB, was not willing to give
me further details on Edwabond, but did confirm that there is an
investigation underway.
2. Edwabond confirmed that they are looking to be placed under Judicial
Management, with a court date of 18 May.
3. SAVCA has limited standing in terms of censure of Edwabond, recourse
should be in terms of the prospectus issued and the FSB.
4. I understand that this is not the answer that you are looking for, however
given the allegations you make and a potential breech of the code of conduct
during the time of their membership, I will be asking Edwabond to reply to a
letter that I will be sending them about your situation and allegations.
5. On reply from Edwabond I will revert.

Yours sincerely

J-P Fourie
Executive Officer